A Decade of Rewards: $847 Bil From Apple Stock

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AAPL: Apple logo
AAPL
Apple

In the last decade, Apple (AAPL) stock has returned a staggering $847 Bil back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.

As it turns out, AAPL stock has returned the highest amount to shareholders in history.

  AAPL S&P Median
Dividends $141 Bil $4.4 Bil
Share Repurchase $706 Bil $5.6 Bil
Total Returned $847 Bil $9.2 Bil
Total Returned as % of Current Market Cap 21.0% 25.6%

Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more stocks like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.

Portfolio beats stock-picking every time. Consider what could long-term performance for your portfolio be if you combined 10% commodities, 10% gold, and 2% crypto with equities.

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Top 10 Stocks By Total Shareholder Return

  Total Money Returned As % Of Current Market Cap via Dividends via Share Repurchases
AAPL $847 Bil 21.1% $141 Bil $706 Bil
MSFT $364 Bil 9.5% $165 Bil $199 Bil
GOOGL $343 Bil 10.2% $12 Bil $331 Bil
XOM $212 Bil 42.9% $145 Bil $67 Bil
WFC $208 Bil 73.9% $59 Bil $150 Bil
META $178 Bil 11.3% $7.7 Bil $171 Bil
JPM $174 Bil 20.2% $0.0 $174 Bil
ORCL $161 Bil 22.9% $34 Bil $126 Bil
JNJ $157 Bil 34.8% $104 Bil $52 Bil
CVX $153 Bil 57.9% $97 Bil $55 Bil

For full ranking, visit Buybacks & Dividends Ranking

What do you notice here? The total capital returned to shareholders as a % of the current market cap appears inversely proportional to growth prospects for reinvestments. Stocks like Meta (META) and Microsoft (MSFT) are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.

That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s look at some numbers for AAPL. (see Buy or Sell Apple Stock for more details)

Apple Fundamentals

  • Revenue Growth: 6.0% LTM and 1.8% last 3-year average.
  • Cash Generation: Nearly 23.5% free cash flow margin and 31.9% operating margin LTM.
  • Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for AAPL was -0.9%.
  • Valuation: Apple stock trades at a P/E multiple of 40.6

  AAPL S&P Median
Sector Information Technology
Industry Technology Hardware, Storage & Peripherals
PE Ratio 40.6 23.8

   
LTM* Revenue Growth 6.0% 5.6%
3Y Average Annual Revenue Growth 1.8% 5.3%
Min Annual Revenue Growth Last 3Y -0.9% -0.0%

   
LTM* Operating Margin 31.9% 18.8%
3Y Average Operating Margin 30.8% 18.2%
LTM* Free Cash Flow Margin 23.5% 13.4%

*LTM: Last Twelve Months

That’s a good overview, but evaluating a stock from an investment perspective involves much more. That is exactly what Trefis High Quality Portfolio does. It is designed to reduce stock-specific risk while giving upside exposure.

AAPL Historical Risk

Apple isn’t immune to big drops either. It plunged about 81% during the Dot-Com Bubble and around 61% in the Global Financial Crisis. Even the 2018 correction and Covid sell-off knocked it down roughly 31-39%. The recent inflation shock caused a similar 31% dip. So, despite all the positives around Apple, severe market shocks can still take a heavy toll. Quality stocks can soften the blow but not avoid it completely.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read AAPL Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.